This paperworks is originally coming from direct visit to some wholesale market in Japan, including Ohta Wholesale Market (the biggest wholesale market in Japan), on Oct 2014 and some local JA offices in Ibaraki Prefercture. -for some further informations question or suggestions please contact my email, also regarding of the references

1. A Glance at Japanese Food System
Masashi Tachikawa Sensei
Japanese Food System Laboratory Works
Muhammad As’ad/ 14SP231A/ Oct 2nd - 24th, 2014
Japanese food system is a very complex system that consisted of three major
actors, such as government and Japanese Agriculture Cooperatives (JA), farmers or
producers, and consumers. Those are very simple explanation as generally consuming
systems occur world-widely, but here in Japan, those three actors have a very broaden
function, responsibilities, issues, and also concerns. This article will explain general
understanding of Japanese food system through wholesale market system and
Japanese Agriculture Coops (JA). Back to Edo Era, where most of principal Japanese
modern civilization system occurred, market is the main and important for Japanese
people and farmers. As of its importance, Tokugawa was established the first central
wholesale market in Kanto (Tokyo), near Nihon-bashi bridge to support the life near
Edo castle. After the opening of Nihon-bashi bridge market for fish and some
agriculture products, Tokugawa also permitted the opening of simultaneous market
around Kanto regions, especially to distribute agriculture products. But still, the rice
distribution on those days is fully controlled by Edo government, all over Japan.
Wholesale Market System
Wholesale market system story is started from the opening of Nihon-bashi
bridge market in Edo era. As that condition was stimulating the opening of other
markets around Kanto region, which is controlled and monitored by Edo government.
There is only one product that prohibited to be sold in open wholesale market, that is
rice. Rice is the most principal product for Japanese on those days, so Edo
government take control for the production, distribution, and consumption activity, all
over Japan. This condition retain until Meiji era, even after World War 2, exactly in
1995, this condition is stopped. In their beginning of lead in Japan, Meiji era facing
emerged crisis of agricultural products after rice riots, so they have to find better
distribution system to distribute more equal product all over of Japan. Finally, they
decided to build, formally called central wholesale market. This program projected to
start in 1940s but another agricultural crisis occurred in Japan, so Meiji government
had to accelerate the program, and it finally started in 1923, and started in Tokyo. The
first program is finished in 1935 with achievement of Tsukiji, Kanda, and Koto
Central Wholesale Market establishment. From that condition, it is all started until
today that wholesale market is the primary distribution channel in Japan, that is
consumed almost 60% of agriculture, fish, flower, and meat products, all over Japan.
Wholesale market is generally divided into two types, first is central wholesale
market and local wholesale market. Central wholesale market commonly organized
by prefectural officer, while local wholesale market organized by the local officer,
usually by district, city, or town officer. The scope is also different between them,

2. central wholesale market have broader market, usually products that comes to the
central wholesale market will be distributed to all retailers or intermediary buyers all
over the prefecture area, in the other local wholesale market on distributes the
products around its area with smaller scope, furthermore, nowadays some consumers
can directly buy products in local wholesale market. Some noted point in wholesale
market system is one of the biggest market in the world is Ohta Wholesale Market
which distributes agricultural products, flowers, and fishes, while the most famous is
Tsukiji Wholesale Market, and both of them are located in Tokyo.
The system of food distribution in Japan is very related with wholesale market
system, so since the first time Japanese government created rule to maintain and
develop wholesale market, which called Wholesale Market Law. From that law,
wholesale markets have functions to always receive perishable Japanese products,
collection of products, fair-pricing through public auction, sorting and distribution,
quick settlement of accounts, reducing the distribution cost, providing precise and fair
information, and also hygiene and sanitation inspection to the products, this function
is applied all over Japan. Wholesale market is consisted of many actors, including
upstream, midstream, and downstream actors. The upstream is producer or farmers,
local buyers, and JAs, while the midstream is primary wholesalers, intermediary
wholesalers, wholesale companies, and JAs collection-delivery center, last is the
downstream actors, usually consisted of grocery stores, fruit shops, supermarkets,
consumer coops, distributors, direct selling outlets, food services, and the consumer
itself. The most crucial and strongly-communicated-with-wholesale is the midstream
actor. The midstream is the only one who can buy directly in wholesale market,
especially in central wholesale market, this is because the have to be the authorized
buyers.
Nowadays, wholesale market is facing many emerging problems, due to
globalization in the market all over the world, including the next agreement which is
Japan will be joined soon, Trans-pacific Partnership agreement. Some of the
emerging problems are the decreasing level of commodities share handled by the
wholesale market, new transaction and negotiation system, increasing level of
imported products, and nationally unified commissions for the wholesale market.
Wholesale market operation cost comes from its income through the dealing
commission agreed between wholesale market and the upstream actors. Before 2009,
the commission is fixed for all wholesale market in Japan, but today it is already
dismissed and it is causing competition between all wholesale markets in Japan. The
new negotiation and transaction system is also influenced operation behaviors in
wholesale market, due to communication capability, transaction and negotiation is
commonly agreed before the products come to the wholesale market or even
sometimes the products never come to the wholesale market . Last, the price which
should be predictable, now is very unpredictable because more product is coming
from imported agreement which causing higher chaos in the supply system while the
demand is maintained stagnant due to the population level in Japan is not really
growing.

3. Japan Agriculture Co-operatives (JA)
Japan Agriculture Co-operatives (or usually called JA or JAs) is an organizing
system that helps farmers and agricultural producers to produce, distribute, and sell
their agricultural products all over Japan in order to maintain the farming s ystem and
management. The history of JA is a very long history that comes since the Shogun
Era. Old name of JA is commonly known as Nokai, especially because it was the
most regulated and accepted by the government in the long-time history of JA. JA
was a dividend from Nokai that was established since 1890s as local voluntary works.
Nokai itself was a national, top-down organization, structured from prefecture until
local branches in town and city to answer the needs of national government in
agricultural products. As the time goes by, Nokai did not suitable well for the
Japanese farmers, since the post of 1st and 2nd World War, the left wing of Nokai
finally invented new system, called Nichino, due to their beliefs in socialist and
communist ideas to find the more comfortable- for- but strongly influence the farmers.
This background of condition was the effect of old system of Nokai, which is led by
the imperial in the central and prefectures management, also in the local are they are
led by local political leaders that support the government. Finally, after the new
Agricultural Land Law in the beginning of 1950s the today JA was established, in the
form of reunification in 1956 and joint agreement in 1958 between old Nokai and
Nichino.
Nowadays, JA is having a very strong influence all over Japan, even they are
believed can influence Japanese central government and Tokyo Metropolitan
Government in creating, modifying, or working in some agricultural policies.
Generally, JA has a very complex function in helping the farmers, but easily it can be
divided into three main functions. First is producing groups, next as marketing teams,
and last as supportive development planner. As the producing groups they commonly
not work directly in the field with farmers, only in some cases, but they have ability to
access the strategic plan system to be applied by farmers, therefore they also able to
do the product sorting and inspection system, inputs planning management for
farming system, and one of the main quality assurance manager for agricultural
products, besides government and farmer. Next, JA also has the marketing terms to
help farmers distribute and sell their products so they established some managements,
such as product marketing system for wholesale and direct selling, price predictor in
wholesale market system, and act as distributor for the farmers in most channel of
selling. Last, JA also has supportive development planner to improve the life of the
farmers, including role as a negotiator in policy making with government and other
stakeholders, insurance firm for the farmers facilities and daily life, and also wealth
management system for farmers, like common bank.
Some special features in JA is the marketing and distribution system in
agricultural products, especially rice, and this system is connected with the wholesale
market system in Japan. Today, rice supply in Japan had not controlled by
government since 1995, so JA is having more role in the distribution and selling the
rice in all channels of distribution. But the different condition occurs in fruits and
vegetables, as the government still has control role in the whole distribution system.